Yesterday morning, the well was at a depth of 8125 feet (2477 m) in dolomitic sandstone of the Pennsylvanian Honaker Trail Formation, which hosts the first of the well’s 11 targeted potential pay zones. The well is a further 1350ft above the major Upper Ismay target zone.

Traces of gas were intersected in the interval 7922-7994ft within the Honaker Trail Formation.

“These minor gas shows are considered significant, and indicative of the potential of the Honaker Trail and the underlying formations,” Golden State told the Australian Stock Exchange yesterday.

The Honaker Trail Formation is a cyclic sequence of limestone, shale and sandstone – hydrocarbon source rocks and potential reservoir rocks. The formation hosts significant gas and oil production elsewhere in the Paradox Basin.

Paradox Basin-1 is targeting 11 potential pay zones within the Golden Eagle structure, which potentially host 3 trillion cubic feet of gas-in-place in Pennsylvanian and Mississippian reservoirs.

Golden State is operator and holds an initial 100% interest in the well through its wholly-owned US subsidiary, Golden Eagle Exploration. Denver-based joint venture partner Eclipse Exploration has the right to back in with a 16.67% working interest after Golden State finishes drilling two wells.